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FTSE 100 retraces into 76.4% Fibonacci support

The FTSE 100 broke lower overnight following a wider (daily timeframe) pullback into the 61.8%. There is a good chance that we have seen an end of that wider sell-off, and we will need to remain above 7349 to remain on track to recover from here.

With the price pulling back to the 76.4% retracement, there is a good chance we could start to see the FTSE 100 turn higher from here. Conversely, a break back below 7349 would point towards a possible move into the wider 76.4% Fibonacci, at 7288.

DAX retracement points towards possible rebound

The DAX has also dropped back into the 76.4% following a week of gains. The creation of higher highs and higher lows over that week does provide a strong chance that the current 76.4% retracement will mark the low of the day.

As long as the price does not break below 12,857, a bullish outlook is in place for a move back up above 13,210.

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